Which of the Following Is NOT an Economic Benefit of Depository

question 543

Multiple Choice

Which of the following is NOT an economic benefit of depository institutions?

• A) They borrow long and lend short.
• B) They create liquidity.
• C) They pool risk.
• D) They reduce the cost of monitoring borrowers.

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Definitions:

Myelination

The biological process of forming a myelin sheath around the nerves in the brain and spinal cord, which improves the speed and efficiency of electrical signal transmission.

Habituate

The process of becoming accustomed to a stimulus or environment through repeated exposure, leading to a decrease in response.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in complex behaviors including planning, decision making, and moderating social behavior.

Amygdala

A region of the brain involved in experiencing emotions, especially fear and the processing of emotional memories.